Download pptx - Deltek Insight 2012: Month End Close Made Easy!

Month End Close Made Easy!

Natalie Scicluna, Principal Customer Care Analyst, DeltekGC-458

2 ©2012 Deltek, Inc. All Rights Reserved

Brief Overview of Month End Process

Discuss the recommended closing steps

Review the Key Reconciliations in Costpoint

Discuss why these Reconciliations are important

Discuss the reports needed to prepare each reconciliation

Walk through how to prepare the reconciliations and what they mean

Discuss how to address discrepancies found

Agenda

Overview Month End Process



Month End Cycle Diagram

Deltek Systems, Inc. (2010) Deltek Costpoint General Ledger & Month End Training Guide


Month End Cycle Phases

Deltek Systems, Inc. (2010) Deltek Costpoint General Ledger & Month End Training Guide

Month End Closing Steps



Listed below are the general steps involved in closing an accounting period:

1. Post all adjusting journal entries.2. Post all journals to the General Ledger.3. Post, then freeze, the General Ledger.4. Run a test close.5. Perform the Labor History to General Ledger reconciliation.6. Update financial statement summary balances.7. Enter and post intercompany receivables.8. Reconcile subsidiary ledgers to financial statements.9. Load labor rates for revenue and billings.10. Process and post billings.11. Perform pool maintenance.12. Compute and process indirect rates.13. Post indirect rates.14. Reconcile statement of indirect expenses to the income statement.15. Compute burden cost.

16. Compare project ledger to General Ledger.17. Process revenue, then post.18. Update Project Status Reports and create project report tables.19. Update financial statement summary balances.20. Print and review financial statements.21. Reconcile income statement to organizational cost summary, Project Status Report, and revenue summary.22. Reconcile unbilled analysis to balance sheet.23. Reconcile other material balances on the financial statements.24. Make any necessary adjustments to correct problems found while performing the above steps and reprocess if necessary.25. Print final financial statements.26. Close period.

Closing the Accounting Period

Key Reconciliations



What to run:

Use View General Ledger Activity (GL Inquiry)

Enter FY and press execute

YTD Balance should equal 0.00

Why is it important:

This is a check to ensure there were no erroneous or incomplete postings

FS_SUM In Balance: Integrity Check


What to run:

Use Update Financial Statement Summary Balances

Enter FY and select ‘Load Balance Differences’ then press ‘Execute’

Compares GL_POST_SUM to FS_SUM

Only update if GL Balance is correct

Why it is important:

FS_SUM is the basis for Financial Statements and Cost Pool Computations

Update Financial Statement Summary Balances


What to run:

Use Print Labor History to General Ledger Comparison Report

Enter the FY and Period and print the report

Compares LAB_HS to GL_POST_SUM

Should be done prior to running Calculate Billings and Compute Revenue

Why is it important:

Hours pulled from LAB_HS, Amounts pulled from GL_POST_SUM

Basis for Loaded Labor Rate calculations

Basis for Project Reporting and Labor Utilization

Labor History to General Ledger Reconciliation


General Ledger Control Account to A/P Subsidiary Ledger Compare GL Detail Report to Open A/P Report Total A/P Balance should agree on both reports Ensures the integrity of the detail in the subledger

General Ledger Control Account to A/R Subsidiary Ledger Compare GL Detail Report to A/R Aging Report Total A/R Balance should agree on both reports Ensures the integrity of the detail in the subledger

General Ledger Control Account to Fixed Asset Subsidiary Ledger

Compare GL Detail Report to FA/GL Reconciliation Report G/L Balance on Report should tie to the F/A Balance Total Ensures the integrity of the detail in the subledger

Reconcile Subsidiary Ledgers to Financial Statements


What to run Print PSR at Org level 1 and at Actual rates Run a Statement of Indirect Expenses Compare the Indirect Expenses on the PSR to individual Pools on the

SIE Should be done after pools have been computed

Why it is important: Verifies any changes to the cost pool base including the deletion of

Account/Org combinations Validates that the Indirect Costs Burdens are absorbed by the existing

pool base

Compare Statement of Indirect Expense to Project Ledger


What to run:

Use Compare Project Ledger to General Ledger utility

Enter the FY and Ending Period and press Execute

If records are returned, Compute Burden Costs for the Project and specified Period in table

Why it is important:

Reports cost differences between the two ledgers

Project Ledger is the basis for the computation of Revenue

Project Ledger is the basis for Project Reporting

Compare Project Ledger to General Ledger


What to run: Generate the Revenue Worksheet and Revenue Summary Reports Run these reports prior to Posting Revenue If the Revenue figures look correct, post Revenue to the GL Generate Income Statements and compare the figures to the Revenue

Summary

Why it is important: Revenue is one of the most critical components of financial reporting

and project based reporting. Revenue must match between the Project Ledger and the General

Ledger prior to closing the month

Reconcile Revenue Summary to Income Statement


What to run: Create and Print the Unbilled Analysis Report Review the Unbilled Balance per the GL by Project Review the calculated unbilled difference between Billing History and the

Project Cost & Revenue History. There should not be a difference between the two unless there is an

issue with either setup or processing.

Why it is important: The Unbilled Receivable account represents the biggest potential risk to

every company when left un-reconciled This account generally represents cost that has been capitalized. If this

cost is never billed, then it should be absorbed as an expense. Stale balances in this account generally represent setup flaws in the

database.

Compare Unbilled Analysis Report to Project Ledger

Thank You!